Deutsche pay to outstrip Goldman

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The Independent Online

Deutsche Bank's investment bankers are set to earn more than their élite rivals at Goldman Sachs for the first nine months of this year. Germany's biggest bank has set aside money to pay an average €285,352 (£249,394) to each employee in corporate and investment banking. Total personnel costs per employee at Goldman Sachs, the Wall Street powerhouse notorious for its huge bonuses, were $370,706 (£235,074) in the same period.

Deutsche Bank increased the amount it set aside for pay to €4.62bn (£4.04bn) from €4.24bn (£3.71bn) a year ago. Goldman Sachs, JPMorgan and Credit Suisse have all set aside less money to pay bankers and traders after business slowed from last year's boom.

The average pay per employee masks huge disparities. Top traders and deal makers can expect multimillion-dollar payouts while support staff may earn little more than average wages.

Deutsche Bank's chief financial officer, Stefan Krause, said the market for bankers was fiercely competitive. "Top talent has its value and its price and we cannot ignore that fact," he told reporters.

Deutsche Bank's investment bank yesterday posted an 11 per cent increase in profits, which helped to offset an expected €2.3bn (£2.01bn) charge related to its acquisition of Deutsche Postbank.

The bank swung to a smaller-than-expected third-quarter net loss of €1.21bn (£1.06bn) from a profit of €1.38bn (£1.21bn) a year earlier.

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